May 20, 1986
I have decided to seek voluntary restraint agreements (VRA's) on machine tool imports. In March 1983 the National Machine Tool Builders Association submitted a petition to the Secretary of Commerce recommending import quotas based on the view that imports of machine tools threaten the national security. Pursuant to statute, Secretary Baldrige submitted a report to me in February 1984. In March 1984 I decided that this report should incorporate new mobilization, defense, and economic planning factors then being developed by an interagency group. I then directed the Secretary of Commerce to update the machine tools investigation. In March 1986 Secretary Baldrige submitted his report to reflect this guidance. The National Security Council subsequently discussed the report, and on this basis, I have directed that import levels be reviewed during the next 6 months.
The Secretary of Commerce, in consultation with the Secretary of Defense and other relevant administration officials, indicated that the machine tool industry is a small yet vital component of the U.S. defense base. The Secretary of Commerce further indicated that high levels of imports can potentially erode U.S. capabilities to manufacture critical machine tool product lines. Based on this information, I have decided on the following course of action:
-- Voluntary restraint agreements will be sought with Taiwan, West Germany, Japan, and Switzerland on machining centers, computer-controlled and noncomputer-controlled lathes, computer-controlled and noncomputer-controlled punching and shearing machines, and milling machines.
-- The Departments of Defense and Commerce, in cooperation with the other agencies, will implement an action plan that will:
This action plan, combined with the administration's growth-oriented economic policies and dedicated efforts on the part of the U.S. machine tool industry, will ensure a world-class U.S. industry.